Help your child spend their allowance effectively

With Easter holidays approaching and kids soon to be on school break, parents face the perfect opportunity to teach valuable money lessons.

- Lana Visser-Galant

The extended time at home provides an ideal setting for children to learn about managing their allowance wisely.

Parenting children is an enormous responsibility, and one key role is teaching them about money from a young age, particularly during holiday periods when spending temptations multiply.

It starts by teaching them the difference between a “want” and a “need”. At a young age, they have no real needs to pay for that are essential to their survival, but they may feel the need to have spending money.

Giving your child an allowance gives them a sense of independence or security, so it is necessary for them to pay for items, within limits, of course. As your children get older, you can teach them the importance of budgeting. There are five easy steps to do this.

Saving vs spending